3 10 points 03 02:13:03 eBook The Sterling Tire Company's income statement for 20XX is as follows: STERLING TIRE COMPANY Income Statement Year ended December 31, 20xx Sales (45,000 tires at $60 each) Less: Variable costs (45,000 tires at $45) Contribution margin Less: Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (36%) Print References Earnings after taxes (EAT) $ 2,700,000 2,025,000 675,000 600,000 75,000 15,000 60,000 21,600 38,400 Given this Income statement, compute the following: a. Degree of operating leverage. (Round the final answer to 2 decimal places.) DOL 9X b. Degree of financial leverage. (Round the final answer to 2 decimal places.) DFL 125 X c-1. Degree of combined leverage. (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) DCL 1125 X EX 02:12:52 c-2. Using your answers to a. and b. calculate the percentage increase in EBIT and EBT from a 20 percent increase in sales volume. (Do not round the intermediate calculations. Round the final answers to 2 decimal places.) eBook Print References EBIT EBT c-3. Does financial or operating leverage have the greater impact? O DFL O DOL d. Break-even point in units. (Round the final answer to the nearest whole number.) Break-even point tires e. Break-even point considering the interest expense as a fixed cost Break-even point tires